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2013 (11) TMI 1529 - AT - Central ExciseDenial of CENVAT Credit - Payment of duty using lapsed credit - Held that:- impugned demands pertain to the period prior to 1-3-1997 and the credit was sought to be lapsed as on 1-3-1997. If the demands had been confirmed earlier, that is, prior to 1-3-1997, the appellant would have been eligible for setting off the credit against the duty liability. Merely because the demand has been confirmed subsequently, the appellant cannot be denied the utilisation of lapsed credit which had accrued to them prior to 1-3-1997. - appellant had a closing balance of ₹ 2,46,90,647/- as on 28-2-1997 and the credit pertaining to raw materials, semi-processed goods and finished goods amounted to ₹ 1,11,49,513/- and the credit allowed to be lapsed on 1-3-1997 was ₹ 1,35,41,134/-. As against this the differential duty liable to be paid by the appellant is ₹ 98,24,993/- plus ₹ 33,62,675/- totalling ₹ 1,31,87,668/-. Thus the demand against the assessee is less than the credit allowed to be lapsed and the lapsed credit could have been utilised for discharge of duty liability. We also notice that there is an error in the computation of demand of ₹ 1,89,10,961/- inasmuch as the demand required to be confirmed was for the period May, 1996 to July, 1996 whereas the same has been computed for the period up to August, 1996. If necessary correction is done, then the demand would come down by ₹ 5,84,190/-. - Decided in favour of assessee.
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